Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Feb 2010
Case Brief
On January 07, 2010, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Karam Chand Thapar & Bros Limited, based in New Delhi, for carrying on the business of a non-banking financial institution. RBI said the cancellation was under Section 45-IA(6) of the RBI Act, 1934, and that the company had voluntarily exited the business. As a result, the company can no longer transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Karam Chand Thapar & Bros Limited, whose registered office is in New Delhi, under Section 45-IA(6) of the RBI Act, 1934. The release states that the cancellation was made because the company had voluntarily exited from the business of a non-banking financial institution.
Operating Impact
The company is barred from carrying on or transacting any non-banking financial institution business after cancellation of its registration. This affects the company directly; no broader customer or depositor action is described in the release.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 7 Jan 2010
- Effective From
- 7 Jan 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC